USD/JPY Price Forecast – US Dollar Continues Bullish Flag Pattern

The US dollar has gone back and forth against the Japanese yen as we are hanging about the top of the bullish flag pattern. At this point, it looks very likely that we continue to see buyers on dips, and it is also possible that we do get a little bit of a pullback in the short term in order to pick up a bit of value. That being said, the ¥112.50 level underneath should be supportive, as the 50 day EMA is hanging around that area, and we have seen a significant amount of support from the most recent bounce. That being said, even if we were to break down below the ¥101.50 level, I think there is plenty of support underneath at the ¥110 level as well, as the 200 day EMA is in that general vicinity.

USD/JPY Video 16.11.21

To the upside, the ¥115 level is a significant barrier to overcome, and if we can break above there then I think it becomes more or less a “buy-and-hold market”, as it should send this market significantly higher in general. After that, it is worth noting that we could head to the ¥118 level quickly. In other words, ¥115 is a crucial level to pay close attention to. Keep in mind that this pair is sensitive to risk appetite in general, as the Japanese yen is considered to be a “safety currency”, and therefore if there is more “risk off behavior”, then the Japanese yen tends to strengthen. Even though the US dollar is often thought of as a safety currency as well, the Japanese yen is considered to be the ultimate one.

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